A deduction from the amount of taxable sales used to calculate the amount of sales and use taxes that the owners of restaurants that participate in an oyster shell recycling program are required to remit to the comptroller of public accounts

Texas House Bill 3487, effective October 1, 2025, allows restaurant owners who participate in a recognized oyster shell recycling program to deduct a portion of their taxable sales when calculating the sales and use taxes they owe. This incentive aims to encourage restaurants to recycle oyster shells, which can help restore oyster habitats and support environmental conservation efforts.

Supporters of HB3487 commend the bill for promoting environmental sustainability by incentivizing restaurants to participate in oyster shell recycling programs. They highlight that recycling oyster shells is crucial for restoring oyster reefs, which provide habitat for marine life and protect shorelines. The tax deduction is seen as a practical measure to encourage more restaurants to engage in these beneficial practices.

Critics of HB3487 express concerns about the potential reduction in tax revenue resulting from the deductions offered to participating restaurants. They argue that while environmental conservation is important, the state must carefully consider the fiscal impact of such incentives. Additionally, some question whether the tax deduction is substantial enough to motivate widespread participation among restaurant owners.